Cognizant is facing a multimillion-dollar lawsuit from Clorox due to failures in security procedures that enabled a hack. The incident occurred in August 2023, disrupting Clorox's operations with an estimated cost of nearly $400 million. Clorox alleges that Cognizant's service desk provided unverified access to a hacker, who convinced a support employee to reset a password. Cognizant assured adherence to security protocols, yet failed to authenticate requests properly, leading to the breach and subsequent issues for Clorox.
Cognizant provided the service desk that Clorox employees could contact when they needed password recovery or reset assistance. Cognizant's operation of the service desk came with a simple, common-sense requirement: never reset anyone's credentials without properly authenticating them first. Clorox made this easy for Cognizant by providing them with straightforward procedures to follow.
Despite assuring Clorox that it was following these procedures, Cognizant's conduct on 11 August 2023 demonstrated spectacularly that it was failing to do so. Cognizant's failures resulted in a catastrophic cyber attack on Clorox.
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